I had this exact same issue. Suddenly after upgrading to VisualStudio 2013 and the newer InstallShield LE and building my installation packages they would fail with the cryptic 1001 error.
Definitive Answer
I found the definitive answer. You can no longer have the checkbox for "installer class" selected in InstallShieldLE. You must uncheck that item.
In order to open this dialog box, go to Specify Application Data > Files and right click on your Primary Output and select Properties.
Previously, You Had To Have It Selected: Now It Must Not Be Selected
Previously (Visual Studio 2012 and before you had to have that item selected or the service installation would fail. This is quite terrible.
Now, you have to go to following tree item in the InstallShield LE project and double-click the Services node:
After that the Services item appears on the left (have I mentioned what a terrible UX and UI this entire thing is?) and right click it so you can add the service.
Choose the menu item which appears to add the service and you'll get a form which allows you to set up the installer details.
Once you do that and rebuild your MSI will work and this will resolve the 1001 error.
This was all a terrible waste of time that the original InstallShield Devs could've resolved. Unfortunate.
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